There are many different reasons why people invest. Some investors look for steady and reliable income from dividends to supplement their current salary, whereas others make riskier bets on future growth and highly volatile stocks in the hopes for meaningful capital gains. In this article, I’ve put together a list of stocks which meet or exceed expectations in two or more aspects, causing them to be appealing investments .
Senvest Capital Inc. (TSX:SEC)
Senvest Capital Inc., through its subsidiaries, holds investments in equity and real estate holdings primarily in the United States. Started in 1968, and currently run by Victor Mashaal, the company currently employs 28 people and with the market cap of CAD CA$681.45M, it falls under the small-cap group.
SEC’s ability to more than double its earnings in the past, leading to an equally impressive triple-digit return on equity, is an impressive feat for the company. SEC has ample cash coverage over its short term liabilities and its debt-to-equity ratio of 1.43% is within the appropriate range. revealing the company’s robust financial health. Moreover, SEC is currently trading below its true value in terms of its discounted cash flows, and its relative PE ratio compared to its industry, so potential investors can purchase the stock below its value. More detail on Senvest Capital here.
TSX:SEC Income Statement Jan 18th 18 Canoe EIT Income Fund (TSX:EIT.UN)
Canoe EIT Income Fund is a closed-ended balanced fund launched and managed by Canoe Financial LP. Canoe EIT Income Fund was established in 1997 and with the market cap of CAD CA$1.15B, it falls under the small-cap group.
EIT.UN has an appropriate 8.45% debt-to-equity, and total debt is adequately covered by its operating cash, which denotes its strong financial position. EIT.UN’s share price is below its intrinsic value based on its discounted cash flows, and also on its price-to-equity metric, so potential investors can purchase the stock below its value. Likewise, EIT.UN’s high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income. Continue research on Canoe EIT Income Fund here.
TSX:EIT.UN Historical Debt Jan 18th 18 Changfeng Energy Inc. (TSXV:CFY)
Changfeng Energy Inc., through its subsidiaries, distributes natural gas for residential, commercial, and industrial users in the People’s Republic of China. Changfeng Energy was formed in 1995 and has a market cap of CAD CA$41.18M, putting it in the small-cap stocks category.
CFY’s earnings growth in the past year of 74.26%, surpassing its industry profit growth level of 6.38%, is what investors like to see. CFY’s ample cash flow generated from its operations to cover its total debt levels, and its capability to generate enough profit to cover interests, indicates its strong financial position. Likewise, CFY’s share price is below its intrinsic value based on its discounted cash flows, as well as its relative price-to-equity valuation, so potential investors can purchase the stock below its value. More on Changfeng Energy here.
TSXV:CFY Income Statement Jan 18th 18 For more fundamentally-robust companies with industry-beating characteristics to enhance your portfolio, use our free platform to explore our interactive list of big green snowflake stocks.